Buying US shares while AUD on par

[moXJO]

Anyone else been looking into US shares while our dollar has been strong?
I'm looking at the best way to capitalize on the US$ being weak.

 

[prawn_86]

Anyone else been looking into US shares while our dollar has been strong?
I'm looking at the best way to capitalize on the US$ being weak.

Dont forget that any asset overseas you buy then has 2 forms of financial risk. Risk of that asset class, and currency risk. If you are betting on the AUD going down against the USD (hence why you want to hold shares there) you are better just taking a straight currency play.

If you want US shares becuase you think they are good value etc, then you probably should hedge a portion of your USD exposure in case the rates do not move in your favour.

I saw soemthing the other day about gold being steady in AUD terms over the last month or so, because as the price has gone up, so has the AUD.

 

[skcots]

Peter Schiff believes that US stocks have only increased because of the USD losing value. If this is the case and also the reason for strength with the AUD then buying shares now at 98c/USD is not any better then a few months ago at 88c/USD.

 

[c-unit]

If you are short term bullish on USD against the AUD then you are better off just holding USD in your pocket imo. I'd be very careful touching the US market at the moment. In real terms, they are in a serious recession and are on the verge of depression. The Dow's momentum the last year has purely been a case of money supply inflation needing somewhere to go and I can't see that being maintained. I would expect all that inflation start making its way towards consumer prices shortly.

 

[moXJO]

So... US$ wait for the correction then buy shares

 

[c-unit]

Well in that case I'm guessing you'd be in it for the long haul. How confident are you that the US will recover?

I read somewhere yesterday that China announced they would no longer be buying US treasuries. That's a big problem for America, because the Chinese have been keeping them on life support for 3 years. Who will buy them now? Ben Bernanke!!! Chinese purchases of treasuries and the undervalued Yuan are the only factors that have prevented the US going into hyperinflation imo.

Let me know how it goes

 

[rcm617]

May be worthwhile buying into MFF if you're looking at US share exposure and exposure to a dropping $A. They are predominantly into US shares, mostly multinationals such as American Express, Yum Brands, Ebay, Coca Cola etc, with some non US shares such as Nestle. They are unhedged, so have not been performing to well as the $A has risen, but will benefit if the $A starts reversing. Chris Mackay who is in charge of their investments is a very sharp operator. At the moment their NTA are 71 cents which you can buy for 60c.

 

[nukz]

So... US$ wait for the correction then buy shares

Don't hold your breath lol

I personally woudn't touch the u.s market in any form. The only thing i would be looking at if i did want to get in(and i don't) is agriculture/organic farming.